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Article: Quality control an essential tool.
- Article from:
- Australasian Business Intelligence
- Article date:
- May 21, 2002
CopyrightCOPYRIGHT 2002 News provided by Comtex. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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May 19, 2002 (Herald Sun
ABIX via COMTEX) -- There are four fundamental criteria for identifying good quality stocks for investment. The most important is financial health, calculated using accounting ratios and financial data from the company's balance sheets. The remaining fundamentals are return on assets, earnings growth via earnings per share, and current share price value. Other factors to take into account are share price trend, liquidity, market capitalisation, company activities, and public announcements. Your overriding investment rule should be to understand the financial health of the market and the stock you are ...